1. What is YoY Growth?

Year-over-year (YoY) growth is a comparison of one period's performance against the same period in the previous year. It's a key metric for evaluating business performance, removing seasonal fluctuations to show true growth.

2. How Does the Calculator Work?

The calculator uses the YoY growth formula:

Where:

• \( Current \) — Current period value
• \( Previous \) — Previous period (year) value

Explanation: The formula calculates the percentage change between the current value and the previous value, showing growth or decline.

3. Importance of YoY Growth Calculation

Details: YoY growth is essential for understanding business trends, making strategic decisions, and evaluating performance without seasonal distortions. It's widely used in financial analysis, sales reporting, and economic indicators.

4. Using the Calculator

Tips: Enter both current and previous values in dollars (or your currency of choice). Both values must be positive numbers. The calculator will show the percentage growth or decline.

5. Frequently Asked Questions (FAQ)

Q1: Why use YoY instead of month-over-month?
A: YoY comparisons eliminate seasonal variations that might distort month-to-month comparisons, providing a clearer picture of true growth.

Q2: What is considered good YoY growth?
A: This varies by industry, but generally 10-15%+ is strong growth. Compare against industry benchmarks for meaningful analysis.

Q3: Can YoY be negative?
A: Yes, negative YoY indicates decline compared to the previous year. This signals potential problems needing investigation.

Q4: How is YoY different from CAGR?
A: YoY shows annual changes, while CAGR (Compound Annual Growth Rate) smooths growth over multiple years into an average annual rate.

Q5: When should I use YoY analysis?
A: Use it for annual performance reviews, investor reporting, and when making long-term strategic decisions about your business.